Crosland Southeast purchases Oak Ridge Mall

Valentine's Day came early to The Secret City this year, as the Oak Ridge Chamber of Commerce has announced that Crosland Southeast, a retail and mixed-use development firm “with roots spanning three-quarters of a century,” has signed a contract to purchase Oak Ridge City Center — previously the Oak Ridge Mall, from Oak Ridge City Center LLC.

Comment

By Darrell Richardson/Staff

Oakridger - Oak Ridge, TN

By Darrell Richardson/Staff

Posted Feb. 13, 2013 at 10:18 AM
Updated Feb 13, 2013 at 10:36 AM

By Darrell Richardson/Staff

Posted Feb. 13, 2013 at 10:18 AM
Updated Feb 13, 2013 at 10:36 AM

Valentine's Day came early to The Secret City this year, as the Oak Ridge Chamber of Commerce has announced that Crosland Southeast, a retail and mixed-use development firm "with roots spanning three-quarters of a century," has signed a contract to purchase Oak Ridge City Center — previously the Oak Ridge Mall, from Oak Ridge City Center LLC.

"The two companies came to agreement and signed a purchase contract in late January," a Feb. 13 release from the Chamber stated.

"Crosland Southeast is currently conducting its due diligence. It is anticipated that demolition of the current mall could begin by early 2014."

Parker Hardy, president and CEO of the Oak Ridge Chamber of Commerce, said the Chamber and the city of Oak Ridge began conversations with Crosland Southeast about the mall project in the fall of 2012. Hardy added that the local entities have worked with "at least five serious prospective buyers" since the public announcement last summer that the mall was for sale.

"This is a project that really exemplifies how development — both retail and economic — is a marathon and not a sprint," Oak Ridge City Manager Mark Watson stated in Wednesday's release.

"It has taken many years of hard work, relationship building, tough decision-making, and connecting the right buyer with the mall owners to get headed in the right direction. …This is proof of how working together can achieve results for a better city."

Though site plans haven't been developed yet, Crosland Southeast plans to create a mixed-use center — which could include retail, restaurants, office space and more.

"From the beginning of this process, the city clearly expressed the community's vision for the redevelopment of the former mall property," stated Ray Evans, economic development consultant for Oak Ridge. "That vision is for a true mixed-use town center with retail, commercial, residential, hospitality and public components.

"Not every prospect we met with embraced that vision," Evans explained. "Crosland Southeast did, and I believe their development plan can be truly transformative for the community."

Tim Sittema, a Crosland Southeast partner, stated: "We feel the Oak Ridge market is under-served in terms of retail and feel very positive about the retailers we believe we can bring to this new center.

"We look forward to being part of the retail market in Oak Ridge."

Chamber president Hardy said the Crosland Southeast project will provide "a very viable option" to retailers who've been interested in locating in Oak Ridge for a long time.

"For several years, as we've attend retail real estate conventions, we've been asked, 'What's happening with the mall?'" said Hardy. "We're pleased to now have an answer to that question and are optimistic this will bring a retail upswing to the city of Oak Ridge.

Page 2 of 2 - "We know that Crosland Southeast has the relationships with retailers to bring shopping and dining options Oak Ridgers and our neighboring cities and surrounding communities have been asking for."

According to Wednesday's release, the principals of Crosland Southeast have successfully developed more than 24 million square feet of retail and mixed-use projects — perhaps most notably in the Carolinas, including Biltmore Park Town Square, which is a 790,000-square foot mixed-use development in Asheville, N.C. They have also developed Providence Marketplace, an 835,293-square foot mixed-used development in Mount Juliet, Tenn., just outside of Nashville.

"Through its acquisition of Crosland's Retail Development division in 2011, Crosland Southeast and its partners have a long history of developing and leasing award-winning retail and mixed-use developments throughout seven Southeastern states," the release stated.

"Today, Crosland Southeast perpetuates the excellence of the legacy company with its emphasis on the development of high-quality retail and mixed-use projects, retail acquisitions, advisory services and single-tenant development.

"The team is currently developing such projects as Stonebridge in Richmond, Va., which was named Virginia's Best Public/Private Partnership of 2012 by the Virginia Business publication, the final phase of the 260-acre Blakeney development in South Charlotte and a very active single-tenant build-to-suit pipeline."